SINGAPORE, Feb 25 (IFR) - Asian credit markets made a quiet
start to the last week of February, with small gains in the
regional stock markets and a dovish Fed keeping credit spreads
rangebound and cash bonds just a touch firmer.

"Nothing of significance has gone through today in the
secondary credits," said a Singapore-based trader. "Everyone is
waiting until the US and European markets open later today for a
clearer sense of direction."

Stocks moved higher in Hong Kong and Japan today on the back
of gains in the Dow last Friday, although Korean equities were
the only underperformers in the region, dropping 0.46%.

The gains had only a small spillover into the credit markets
up, with spreads staying flattish. The iTraxx IG Asia traded at
108.25, and hovered around those levels, just slightly tighter
than the 108/110bp heard on Friday evening.

The sluggish tone was certainly not the most conducive
environment for any new issue to launch but Glorious Property
chose to be the only visitor today, showing a 5NC3 Reg S bond at
a price talk of 13.25% area. That is some 200bp more than what
CIFI Holdings' pulled deal had offered last week.

Despite the new issue, China high-yield space held steady,
with a similar story in outstanding Indian FIG paper, which
tightened despite potential new supplies.

State Bank of India 2017s were quoted at 222bp/212bp, while
ICICI 2018s were quoted at 245/236bp, against 223bp/218bp and
245/250bp, respectively.

The main underperformer in the Indian space continued to be
Reliance's perpetuals which stayed stubbornly under its reoffer
at par, indicated at 98.25/99 today, which meant the notes
slipped further today from Friday's over 99. Not all perps are
under water; Petron's perps are still holding strong at
105.5/106.5 today.

In the offshore sovereign space, Philippines curve stayed
well supported. Its 6.5% 2020s are at a cash price of 126/127,
up from 125.75 last Wednesday, while its 2025s were at 167.